The Supreme Court of India has recently ruled that the two tenure extensions bestowed upon the Director of the Enforcement Directorate (ED) are “not valid in law”. While the director is allowed to serve until July 31, his overall tenure has been shortened.
The Course of The Director’s Tenure and Challenges
The present director assumed his position in November 2018 for a term of two years. In November 2020, his term was extended by another year. This extension was challenged through a petition. The Supreme Court dismissed this petition on September 8, 2021, but issued a specific mandamus barring any further extensions.
The government later altered the Central Vigilance Commission Act, 2003, and the Delhi Special Police Establishment Act, 1946. These amendments allowed for three tenure extensions. These tweaks were contested, as they allegedly conflicted with a Supreme Court directive advocating for definite tenures for top officials such as the CBI chief (Vineet Narayan Case). The court deemed the amendments constitutional but invalidated the director’s specific extensions since they defied the previous mandamus.
Appointment and Role of The ED Director
The ED Director is appointed following Section 25 of the Central Vigilance Commission Act, 2003. The Central Government appoints the Director on the recommendation of a selection committee comprised of the CVC Chairperson, Vigilance Commissioners, Secretaries from the Ministry of Home Affairs, the Ministry of Personnel and the Ministry of Finance.
The Concept of Mandamus
The term mandamus refers to an order given by a court to a public body, tribunal, corporation, or lower court, instructing them to fulfill a specific legal duty. In India, it ensures the protection of citizens’ fundamental rights when violated by the state or its agencies. It also prevents authorities from abusing their power or discretion.
Understanding The Enforcement Directorate
The ED is a multi-disciplinary organization that investigates money laundering offences and foreign exchange law infringements. It operates under the Department of Revenue, Ministry of Finance, Government of India. Founded in 1956 as an ‘Enforcement Unit’, it was renamed ‘Enforcement Directorate’ in 1957. In 1960, administrative control was shifted from the Department of Economic Affairs to the Department of Revenue.
The Laws Enforced by The ED
The ED enforces laws like the Foreign Exchange Management Act,1999 (FEMA), the Prevention of Money Laundering Act, 2002 (PMLA), and the Fugitive Economic Offenders Act, 2018 (FEOA). The FEOA was established to deter economic criminals from evading Indian legal processes by staying outside the jurisdiction of Indian courts.
Structure of The Enforcement Directorate
The Directorate of Enforcement with its head office in New Delhi, is led by the Director of Enforcement. It has five regional offices located in Mumbai, Chennai, Chandigarh, Kolkata, and Delhi, each headed by Special Directors of Enforcement.
